Dr Reddy’s may launch 3 new drugs in US next fiscal

Dr Reddy’s Laboratories may launch three new drugs in the US market next fiscal after the settlement of disputes with foreign players over the rights to two of them and a favourable court ruling in a third case

Pharma major Dr Reddy's Laboratories Ltd may launch three new drugs in the US market next fiscal after the settlement of disputes with foreign players over the rights to two of them and a favourable court ruling in a third case.

The company may launch Rivastigmine, an anti-mild-to-moderate Alzheimer's drug, Desloratadine, used to treat allergies and Pseudoephedrine, a nasal/sinus decongestant.

In 2008, the company entered into a settlement agreement with Novartis Pharma that involves a stipulation of dismissal of lawsuits filed in the US relating to Rivastigmine capsules sold under the trade name Exelon. Dr Reddy's inked agreements in 2009 with Schering and Sepracor of the US, which will allow the Indian drug-maker to manufacture and market generic versions of Desloratadine, starting 2012.

Similarly, Dr Reddy's got a shot in the arm after the US District Court of New Jersey recently cleared decks for the launch of the generic version of Allegra-D 24 in US. This product may also be launched next year, the company said.

The revenues from generic sales in North America stood at $301 million in the last fiscal and $287 million so far this year, it said.

On Wednesday, Dr Reddy's ended 0.87% up at Rs1,619.55 on the Bombay Stock Exchange, while the benchmark Sensex gained 0.16% to 18,469.95.


Share prices continue to be listless: Wednesday Closing Report

As expected, the market was directionless. We will soon a see big move coming, though

The markets opened in positive terrain supported by strong Asian markets and easing of political tensions within the government. Rate-sensitive sectors like banking, realty, metal and capital goods led early gains. Choppy trade followed with the indices moving into the red in mid-morning trade.

Feeble recovery attempts were thwarted by selling pressure, with the indices consolidating the gains of the last few trading sessions and ending almost flat today.

The Sensex opened with a gap up of 83 points at 18,523 and the Nifty opened 22 points up at 5,542, on weaker oil prices. They hit intra-day highs early in the trading session, but soon witnessed a falling trend. The intra-day highs of the Sensex and Nifty were 18,583 and 5,563. By noon the indices hit their intra-day lows of 18,304 and 5,477, respectively. The market rose later in the day. By the end of the session the Sensex was up 30 points at 18,470, while the Nifty was 10 points up at 5,531. The advance-decline ratio on the National Stock Exchange was 959:618.

The market breadth on the key indices was almost equal. The Sensex closed with 16 gainers and 14 losers, and the Nifty headed home with 26 stocks in the green and 24 declining stocks. The broader indices outperformed the Sensex today. The BSE Mid-cap index gained 0.65% and the BSE Small-cap index rose 0.82%.

Even though trade lacked direction, there were only two losers in the sectoral space. The BSE Realty index (up 1.74%), BSE Consumer Durables (up 0.88%), BSE Auto (up 0.72%), BSE Power (up 0.48%) and BSE Capital Goods (up 0.40%) were the top gainers, while BSE Healthcare (down 0.36%) and BSE IT (down 0.14%) were the losers.

Reliance Communications (up 9.36%), Reliance Infrastructure (up 2.37%), Bajaj Auto (up 2.27%), DLF (up 1.33%) and ICICI Bank (up 1.24%) were the main gainers on the Sensex. On the other hand, Cipla (down 1.74%), Sterlite Industries (down 1.19%), NTPC (down 1.03%), Jindal Steel (down 0.69%) and Hindustan Unilever (down 0.66%) ended at the bottom of the Sensex list.

Domestic passenger car sales touched a record 1,89,008 units in February this year, a growth of 22.63% vis-à-vis the figure for the month a year ago, as customers advanced their purchases fearing a possible excise duty hike in the Union Budget.

According to figures released by the Society of Indian Automobile Manufacturers (SIAM), February sales bettered the previous high of 1,84,332 units achieved in January this year.

Markets in Asia, with the exception of the Straits Times, settled in the green on easing of crude prices and news of a rise in machinery orders in Japan, an indication that the recovery process is still strong. Banking stocks in China advanced, following media reports that the country's apex bank had reversed a punitive increase in reserve requirements which it had imposed on some lenders. However, fears of civil unrest spreading to Saudi Arabia kept investors on their toes.

Meanwhile, the Shanghai Composite gained 0.11%, the Hang Seng rose 0.42%, the Jakarta Composite advanced 0.51%, the KLE Composite was up 0.40%, the Nikkei 225 surged 0.61%, the Seoul Composite rose 0.26% and the Taiwan Weighted added 0.03%. Bucking the trend, the Straits Times declined 0.35%.

Back home, foreign institutional investors were net buyers of stocks worth Rs237.07 crore on Tuesday. Domestic institutional investors were net sellers of equities worth Rs140.46 crore.

The Anil Dhirubhai Ambani Group-led Reliance Communications (9.36%) today signed final documentation with China Development Bank (CDB) for a Rs6,000 crore ($1.33 billion) loan facility. The loan facility is fully underwritten by CDB, and will be funded by a syndicate of Chinese banks/financial institutions including CDB. This represents the first and largest ever syndicated loan for refinancing spectrum fees.

Ipca Laboratories (up 4.4%) today said its formulations manufacturing unit at a Special Economic Zone (SEZ) in Indore has received the UK health regulator's approval for good manufacturing practices.

The company's new formulations manufacturing unit at the SEZ in Indore has been inspected and certified for compliance with principles and guidelines of good manufacturing practices by the UK Medicines and Healthcare Products Regulatory Agency, Ipca Labs said in a filing to the Bombay Stock Exchange.

Camlin Fine Chemicals (up 6.93%) has successfully closed the deal to acquire Italy-based Borregaard, engaged in manufacturing fine chemicals. The latter is one of the five global producers of hydroquinone, a key raw material for the company's major product. With this acquisition, Camlin Fine Chem has been assured of steady supply of key raw material which at times remains in short supply in the global market.


SAIL, JSW, Essar hike steel prices marginally due to increase in global raw material prices

Soaring raw material prices—mainly coking coal—in international markets have now forced domestic steelmakers to increase prices of their products between Rs300-Rs500/tonne

Indian steel majors have increased their product prices marginally to offset soaring prices of raw materials-coking coal and iron ore-amid sluggish demand.
Steel Authority of India (SAIL), JSW Steel Limited and Essar Steel have increased prices between Rs300-Rs500/tonne, citing increasing raw material prices in international markets.
"SAIL has increased prices of long products by around Rs500 per tonne and flat products by Rs300, effective 3rd March. This is an unexpected hike," a SAIL dealer from the western region told Moneylife.
JSW Steel and Essar Steel officials have also confirmed the price hike.
Long products are used in the construction and infrastructure sector, while flat products are largely consumed by the auto and consumer durables sector.
Soaring raw material prices-mainly coking coal-in international markets have been putting pressure on domestic steelmakers to increase prices of their products, when the demand is not robust.
Domestic steelmakers largely depend on imports of coking coal. Taking cues from trends in coking coal prices, iron-ore prices are also zooming up.
Currently, spot coking coal prices in the international market have crossed $330 per tonne compared to $210 per tonne in December as floods in Queensland, Australia, which is one of the largest suppliers of the commodity, disrupted mining and shipments of coking coal.
Around 70% of India's coking coal demand is met by imports-and out of that, around 80% of coking coal is imported from Australia.
"Prices have been increased by Rs500/tonne as input costs are soaring due to rising coking coal and iron ore prices in the spot market. The only issue is that the price increase should have been higher, but keeping in mind that the closure of the financial year is fast approaching, people are working on regulated inventories and buying is also getting postponed, or delayed, so we have done a marginal increase(in prices)," Sharad Mahendra, vice president, sales and marketing, JSW Steel Limited, told Moneylife.
"Demand for the metal has not been so encouraging over the past few weeks," added the SAIL dealer.
Demand for long products in the domestic market has softened a bit due to lack of big order flows from the government in the infrastructure space. Also, private companies are finding it difficult to execute orders due to high cost of borrowings and hurdles in land acquisitions.
Most infrastructure companies like Larsen & Toubro, Hindustan Construction Company and Siemens have already indicated missing their order book guidance for the current fiscal year, due to persistent delay in order flows from the government.
Steel demand in China-the world's largest steel producer and consumer-has slowed down. According to the China Ministry of Commerce, steel product prices have slipped a bit, and this trend will continue, given the increasing supply and the expansion of inventory due to slim downstream purchasing and bleak demand.
Chinese steel prices dipped in the last week of February by 0.6% from the previous week with 3mm HRC, 10mm common medium plate and 6.5mm high speed wire rod seeing a fall of 1.5%, 1.2% and 1% respectively.
China Iron and Steel Association (CISA) has said that in the first twenty days of February, the inventory of domestic major steelmakers has gone up to 9.46 million tonnes (MT), visibly higher than that of January end at 7.57MT.
According to a latest report published by the Australian Bureau of Agricultural & Resource Economics and Sciences (ABARES), production and sales of thermal and metallurgical coal will be affected because Queensland produces large quantities of both types of coal.



Yang Brand

6 years ago

Nothing more to say than absolutely brilliant


7 years ago

Good details given by moneylife.in about the hike in steel prices done by different companies. It will rise some more burden on middle class families.


7 years ago

Last two year the same problem effects the whole steel industry.pl confirmed one fixed very high rate or very low rate or your (steel producer) marginal rate for one year.every day up and down trend like share market trend is very effect the whole steel industry.

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